Findings: Nearly two-thirds (64%) of U.S. consumers report that high prices, driven by inflation and cost of living, will impact their holiday spending this season. Many are also concerned about credit card interest rates (40%) and the upcoming U.S. presidential election (37%). Some consumers (11%) are even planning to delay their holiday celebrations until 2025 due to financial pressures.
Key Takeaway: Inflation is a major concern for consumers during the 2024 holiday season, leading many to cut back on spending, delay purchases, or shift to more cost-effective shopping strategies. Retailers will need to adapt to changing consumer behavior, with many focusing on post-Christmas sales to boost revenue.
Trend: The key trend is financial caution among consumers, as inflation and economic uncertainty push shoppers to prioritize savings. Many are turning to Black Friday/Cyber Monday deals, shopping at small businesses, and opting for digital gift cards to avoid extra costs.
Consumer Motivation: Consumers are motivated by the need to cut costs and stretch their budgets due to inflation. They are opting for discounted holiday deals, avoiding travel, and using strategies like thrifting, regifting, and digital gift cards to save money.
What is Driving the Trend:
Inflation and cost of living: Rising prices are making consumers more cautious with their spending.
High credit card interest rates: These rates are influencing decisions on how and when consumers will make holiday purchases.
Economic uncertainty: External factors, including the outcome of the U.S. presidential election, are affecting consumer confidence.
Who the Article Refers To: The article refers to U.S. consumers across all demographics, with specific focus on Gen Z and millennials, and how inflation and financial pressures are impacting their holiday shopping plans. Retailers are also mentioned as they need to adapt to these consumer trends.
Consumer Product or Service: The article discusses holiday shopping behavior, focusing on ways consumers are adjusting their habits to cope with inflation, such as shopping on Black Friday/Cyber Monday, avoiding shipping fees, and buying from small businesses.
Conclusions: Inflation is driving consumers to be more financially cautious during the 2024 holiday season. Retailers will need to focus on competitive pricing, providing excellent customer service, and adapting to consumer preferences for shopping events like Black Friday to remain relevant and profitable.
Implications for Brands: Brands should enhance their online presence, offer cost-saving solutions like free shipping, and ensure their staff are trained to deliver a top-notch customer experience. Retailers who adjust to consumers' financial needs by offering promotions and deals during key shopping events will likely see better results.
Implications for Society: The financial strain from inflation is leading consumers to make tough choices during the holiday season, like opting out of gifting or delaying celebrations. This reflects broader concerns about the economy and cost of living.
Big Trend Implied: The shift towards frugal holiday shopping is the big trend, with consumers relying on discounts, strategic shopping, and cost-saving measures to cope with inflation. Retailers must adapt to this trend by focusing on deals, digital options, and providing excellent value to their customers.
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